Desco Infratech Ltd

BSE: 544387

₹ 156-0.95%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 120 crWebsite: www.descoinfra.co.inUpdated: 25 Oct 2026

About

Desco Infratech is a Surat, Gujarat-based infrastructure company that has provided EPC and specialised execution services across India's energy and utility sectors since 2011. Its core business is City Gas Distribution, and it also works in power distribution, solar EPC, water infrastructure and compressed biogas. In FY26 it reported revenue of 118.61 crore. It has completed more than 330 projects for over 18 public and private sector organisations in 14 states.^[1][2]

Business segments

City Gas Distribution: Rs 83.24 crore revenue in FY26, 70.2% of the total, with an EBIT margin of 22.2%.^[3]
Power Distribution (including solar EPC): Rs 35.37 crore revenue in FY26, 29.8% of the total, with an EBIT margin of 13.4%. The segment started in H2 FY26.^[3][4]
PAT margin in FY26 was 15.3% in CGD and about 9.5-10% in power distribution and solar EPC, according to management.^[4]
Management expects CGD to stay at 60-65% of revenue and power distribution and solar EPC to make up 30-35%.^[4]

Services

CGD work covers steel and MDPE pipeline laying, PNG connections, gas meter installation, valve stations, and operation and maintenance (O&M).^[1]
Other lines: power distribution, renewable energy, water infrastructure, compressed biogas, fabrication, manpower solutions and equipment leasing.^[1]
Solar EPC grew from 0 MW in FY25 to 27.55 MW commissioned and synchronised in FY26.^[4][1]
PNG installations grew 599% in H1 FY26, and PNG conversions grew 64%.^[1]
The company reported no research and development spending for FY26.^[1]

Order book and pipeline

The FY26 annual report puts the order book at over Rs 370 crore.^[1]
At the Q4 FY26 call the order book was Rs 345+ crore, of which Rs 330-332 crore was CGD. It was Rs 270 crore+ at the end of FY25 (Rs 240 crore+ EPC, Rs 30 crore O&M).^[4][5]
The tender pipeline was Rs 650 crore+ in FY26, up from Rs 431 crore in H1 FY26 and Rs 125 crore+ at the end of FY25. Management assumes 30-40% of bids convert to orders.^[4][6][5]
Orders typically take 18-24 months to execute (FY26).^[4]

Working capital

Working capital days in FY26 were 30-35 in CGD and 10-15 in power and solar.^[4]
Operating cash outflow was about Rs 18-19 crore in FY26 versus about Rs 12 crore in FY25. Management attributes it to unbilled revenue from 13-14 new project locations started in January 2026.^[4][5]
Retention money was 5% in FY25. Trade receivables rose from Rs 13 crore to Rs 20 crore between March and September 2025.^[5][6]

Customers and reach

Clients named include Adani Total Gas, GAIL Gas and Adani Green Energy Six. PSU clients named on calls include IOCL, BPCL, HPCL and GAIL India, and private clients include the Torrent Group.^[1][6]
The company has worked in 14 states and more than 55 cities, and had 55 operating sites in H1 FY26.^[1][6]
Southern India made up 0.47% of sales in FY25, when the company received about Rs 34-35 crore of letters of award in that region.^[5]
Since listing, the company can bid for projects worth Rs 50 crore and above.^[1]

Expansion and capex

Compressed biogas (CBG): a 2 TPD plant was targeted for commissioning in Q1 FY27. The company holds a letter of award (LOA) from a PSU for 5 TPD.^[4]
Planned CBG capex is about Rs 25 crore over 18 months, to be funded with debt: Rs 12-15 crore for 12 TPD in South Gujarat and Rs 9 crore for 4-5 TPD at Dhar, Madhya Pradesh.^[4]
Shri Green Agro Energies (SGAEPL) is to be merged into Desco Bio Green once 5 TPD of CBG capacity is commissioned.^[4]
The company signed a three-party MoU with Naveriya Gas and KPI Green Ammonia and Hydrogen to blend green hydrogen into CGD pipelines (H1 FY26).^[6]
The UAE subsidiary Desco Global FZ-LLC, set up in Ras Al Khaimah in March 2026, has paused operations because of the Middle East crisis. No investment has been made yet.^[4][1]

Recent developments

23 Sep 2026: the company received a Rs 23.40 million purchase order from Adani Total Gas for MDPE pipeline laying and LMC work at Navsari.^[7]
25 Feb 2026: the company acquired Shri Green Agro Energies, a bio-energy business. The Q4 FY26 call describes a 75% stake.^[1][4]
24 Sep 2025: the company set up a wholly owned subsidiary, Desco Bio Green Private Limited, for green energy.^[1]
1 Apr 2025: the company listed on the BSE SME Platform.^[1]

Market Cap

₹120 Cr

High / Low

₹294 / 122

Stock P/E

7.3

Price / Book

0.0

Book Value

₹92

EPS

₹21.3

No. of Shares

0.77 Cr

ROCE

27.1%

ROE

23.1%

OPM

19.7%

Debt / Equity

0.22

Sales

₹119 Cr

Net Profit

₹16 Cr

Promoter holding

58.3%

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